SKHZ Butterfly Strategy
SKHZ (Themes ETF Trust - Leverage Shares 1X Short SK Hynix Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
SKHZ is designed for making bearish bets on the ADR of SK Hynix Inc. through swap agreements and options contracts. The fund seeks to obtain daily inverse exposure equivalent to -100% of the funds net assets. To maintain this exposure, daily rebalancing is performed to make adjustments in response to SK Hynixs daily price movements. As an inverse product, the fund is intended as a short-term tactical tool rather than as a long-term investment vehicle. As a result, returns may deviate from the expected -100% if held for longer than a single day due to compounding. This strategy is high-risk and does not include a defensive position as part of its overall process.
SKHZ (Themes ETF Trust - Leverage Shares 1X Short SK Hynix Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.1M, a beta of 0.00 versus the broader market, a 52-week range of 9.01-15.77, average daily share volume of 2.3M, a public-listing history dating back to 2026. These structural characteristics shape how SKHZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates SKHZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on SKHZ?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
SKHZ snapshot
As of September 29, 2026, spot at $9.50, ATM IV 197.40%, expected move 56.59%. The butterfly on SKHZ below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this butterfly structure on SKHZ specifically: IV rank is unavailable in the current snapshot, so regime-based timing for SKHZ is inferred from ATM IV at 197.40% alone, with a market-implied 1-standard-deviation move of approximately 56.59% (roughly $5.38 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SKHZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SKHZ should anchor to the underlying notional of $9.50 per share and to the trader's directional view on SKHZ etf.
SKHZ butterfly setup
The SKHZ butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SKHZ at $9.50 on that close, the first option leg uses a $9.03 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SKHZ chain at a 17-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 SKHZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.03 | N/A |
| Sell 2 | Call | $9.50 | N/A |
| Buy 1 | Call | $9.98 | N/A |
SKHZ butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
SKHZ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SKHZ. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use butterfly on SKHZ
Butterflies on SKHZ are pinning bets - traders use them when they expect SKHZ to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
SKHZ thesis for this butterfly
The market-implied 1-standard-deviation range for SKHZ extends from approximately $4.12 on the downside to $14.88 on the upside. A SKHZ long call butterfly is a pinning play: it pays maximum at the middle strike if SKHZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, SKHZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SKHZ-specific events.
SKHZ butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. SKHZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SKHZ alongside the broader basket even when SKHZ-specific fundamentals are unchanged. Always rebuild the position from current SKHZ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SKHZ?
- A butterfly on SKHZ is the butterfly strategy applied to SKHZ (etf). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With SKHZ etf at $9.50 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed SKHZ chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SKHZ butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the SKHZ butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 197.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SKHZ butterfly?
- The breakeven for the SKHZ butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SKHZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 56.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SKHZ?
- Butterflies on SKHZ are pinning bets - traders use them when they expect SKHZ to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current SKHZ implied volatility affect this butterfly?
- Current SKHZ ATM IV is 197.40%; IV rank context is unavailable in the current snapshot.